Trollhättan - As a result of GM’s
strategic review of the global Saab business the Saab Board
announced today that it will file for reorganization under a
self-managed Swedish court process to create a fully independent
business entity that would be sustainable and suitable for
investment.

The reorganization is a
self-managed, Swedish legal process headed by an independent
administrator appointed by the court who will work closely with
the Saab management team. As part of the process, Saab will
formulate its proposal for reorganization, which will include
the concentration of design, engineering and manufacturing in
Sweden. This proposal will be presented to creditors within
three weeks of the filing. Pending court approval, the
reorganization will be executed over a three-month period and
will require independent funding to succeed.

“We explored and will continue to
explore all available options for funding and/or selling Saab
and it was determined a formal reorganization would be the best
way to create a truly independent entity that is ready for
investment,” said Jan Ake Jonsson, Managing Director for Saab
Automobile. “With an all new 9-5, 9-3X and 9-4X all ready for
launch over the next year and a half, Saab has an excellent
foundation for strong growth, assuming we can get the funding to
complete engineering, tooling and manage launch costs.
Reorganization will give us the time and means that help get
these products to market while minimizing the liquidity impact
of Saab on GM.”

Funding for the restructured
company will need to be secured during the reorganization
process and will be sought from both public and private sources.

Saab will continue to operate as
usual and in accordance with the formal reorganization process,
with the Government providing some support during this period.
The reorganization should have no impact on other GM operations.
Details of the progress will be provided as milestones are
achieved.